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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
S. SRIMATHY, J.
M. Selvakumar & Another - Petitioners
Versus
The Secretary to Government, Co-operation Food and Consumer Protection Department, Chennai & Others - Respondents
W.P.(MD) Nos. 13900 of 2014 & 618 of 2015 & M.P.(MD) Nos. 1 of 2014 & 1 & 2 of 2015
Decided On : 01-09-2022
Autonomy - Cooperative Societies - Tamil Nadu Cooperative Societies Act - Section 136-A, 136-B, 136-C, 136-D - The court quashed the impugned circular fixing the remuneration of the employees of the Societies as it was against the statutory provisions of the Act. The Society has autonomous power to fix salary as per its financial status. The guidelines issued by the government to fix salary were against the statutory provisions of section 136-D of the Tamil Nadu Societies Act.
Fact of the Case:
The Writ Petition was filed to quash the impugned circular and to allow the Cooperative Credit Society to determine its own employees' salary and other monetary benefits, recruitment of its staff, and other independence acts in terms of Section 136-D(2)(iv) of the Tamil Nadu Cooperative Societies Act. The petitioner argued that the impugned circular was destroying the autonomy of the societies and was against the Constitution of India.
Finding of the Court:
The court found that the impugned circular was against the statutory provisions of the Act and quashed it. The court held that the Society has autonomous power to fix salary as per its financial status and the guidelines issued by the government were against the statutory provisions of section 136-D of the Tamil Nadu Societies Act.
Issues: The main issue was whether the impugned circular, which fixed the remuneration of the employees of the Societies, was in line with the statutory provisions of the Tamil Nadu Cooperative Societies Act.
Ratio Decidendi: The court held that the impugned circular was against the statutory provisions of the Act and quashed it. The court emphasized the autonomy granted to the short term cooperative credit structure societies and the non-obstante clause under section 136-B read with the section 136-D, stating that autonomy was granted to the societies.
Final Decision: The writ petitions were allowed, and the impugned circular fixing the remuneration of the employees of the Societies was quashed. The court held that the impugned circular was against the provision of sections 136-A to 136-D of the Tamil Nadu Cooperative Societies Act.
JUDGMENT :
(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, to call for the records from the 2nd respondent Registrar of Cooperative Societies relating to his impugned circular No. 7/2014, dated 28.02.2014, Na. Ka. No.17933/2013-Thou.Way.Sa.1, to quash the same and to direct the respondents 1 and 2 to allow the Athinathapuram Primary Agricultural Cooperative Credit Society in Tiruchendur Taluk, Thoothukudi District to decide and to determine its own employees salary and other monetary benefits, recruitment of its staff and other independence acts in terms of Section 136-D(2)(IV) of the Tamil Nadu Cooperative Societies Act.
Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, to call for the records from the 2nd respondent Registrar of Cooperative Societies relating to his impugned circular No. 7/2014, dated 28.02.2014, in Na.Ka. No.17933/2013/Tho.Way.Koo.Sa.1, to call for the records from the 3rd respondent regarding the subsequent impugned letter in Na. Ka. No.788/2014.Thou way Koo. Sa., dated 03.03.2014, illegally dictating mandatory guidelines for fixing the next monthly salary of Meignanpuram Primary Agricultural Cooperative Credit Society, Thiruchendur Taluk, Tuticorin District and to decide and determine its own employees salary and other monetary benefits, recruitment of its staff and other independence acts in terms of Section 136-D(2)(IV) of the Tamil Nadu Cooperative Societies Act.)
The Writ Petition in W.P.(MD)No.13900 of 2014 is filed for issuance of a Writ of Certiorarified Mandamus, to quash the impugned circular No. 7/2014, dated 28.02.2014, Na. Ka. No.17933/2013-Thou.Way.Sa.1 and to direct the respondents 1 and 2 to allow the Athinathapuram Primary Agricultural Cooperative Credit Society in Tiruchendur Taluk, Thoothukudi District to decide and to determine its own employees salary and other monetary benefits, recruitment of its staff and other independence acts in terms of Section 136-D(2) (iv) of the Tamil Nadu Cooperative Societies Act.
2. The writ petition in W.P.(MD) No. 618 of 2015 is filed for Writ of Certiorarified Mandamus, to quash the impugned circular No. 7/2014, dated 28.02.2014, in Na. Ka. No.17933/2013/ Tho. Way. Koo. Sa.1 of the 2nd respondent and the subsequent impugned letter in Na. Ka. No.788/2014.Thou way Koo. Sa., dated 03.03.2014 issued by the 3rd respondent, which illegally dictating mandatory guidelines for fixing the next monthly salary of Meignanpuram Primary Agricultural Cooperative Credit Society, Thiruchendur Taluk, Tuticorin District and allow to decide and determine its own employees salary and other monetary benefits, recruitment of its staff and other independence acts in terms of Section 136-D(2)(iv) of the Tamil Nadu Cooperative Societies Act.
3. The brief facts of the case as stated in the affidavit filed in W.P.(MD) No.13900 of 2014 are that the petitioner is one of the elected Director of Aathinathapuram Primary Agricultural Cooperative Credit Society. Initially, the Cooperative movement in this State was strong and served the needy public, particularly farming public. Subsequently, it fell into the hands of unscrupulous persons and many of them started running the society in loss and so the credit needed agriculturists and rural / village population was affected, particularly in the peak of agricultural operation season to borrow loan to buy seeds and fertilizers. For many years, the administration of the Society was in the hands of the Officers of the Cooperative Department under the control of the respondents which lead to the said situation and the society was not run democratically and economically. In order to rejuvenate and to infuse fresh blood and put them back to their glorious day of democratic function and economic inde
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